Hutchison Telecommunications (Australia) Limited (“HTAL” or the “Company”) (ASX: HTA) has a 25.05% equity interest in TPG Telecom Limited (“TPG”) (ASX: TPG). This comprises 11.14% interest directly held by Hutchison 3G Australia Holdings Pty Limited (“H3GAH”, a wholly owned subsidiary of HTAL) and an attributed 13.91% interest indirectly held by H3GAH through Vodafone Hutchison (Australia) Holdings Limited (“VHAH”), a company domiciled in the United Kingdom in which H3GAH has a 50% shareholding. VHAH has a direct 27.82% interest in TPG.
TPG provides telecommunications services to consumers, business, enterprise, government and wholesale customers in Australia.
HTAL was listed on the ASX.
HTAL launched Australia’s first 3G service under the 3 brand.
HTAL’s operations were merged with Vodafone Australia to form Vodafone Hutchison Australia Pty Limited (VHA).
VHA merged with TPG Corporation Limited (formerly TPG Telecom Limited) creating the present TPG Telecom Limited.
2023
$’000
2022
$'000
Movement
$'000
Movement
%
Revenue
857
194
663
342%
Operating expenses
(1,842)
(1,676)
(166)
(10)%
Impairment loss on equity-accounted investments
–
(444,617)
444,617
100%
Share of net (loss)/profit of equity-accounted investments, net of tax
(123,061)
47,721
(170,782)
(358)%
Loss from ordinary activities after tax attributable to members
(124,046)
(398,378)
274,332
69%
Net loss for the year attributable to members
(124,046)
(398,378)
274,332
69%
The 2023 results of Hutchison Telecommunications (Australia) Limited (“HTAL”) (ASX: HTA) included $123.1 million share of net loss of equity-accounted investments in Vodafone Hutchison (Australia) Holdings Limited (“VHAH”)1 and TPG Telecom Limited (“TPG”)2. Compared to $47.7 million share of net profit in 2022, this represented a decrease in share of net profit of $170.8 million. The movement was primarily driven by a $75.2 million increase in HTAL’s share of VHAH’s net finance costs and a $95.6 million decrease in HTAL’s share of TPG’s net profit (after consolidation adjustments).
The increase in the share of VHAH’s net finance costs was attributable to an increase in interest rates. The decrease in the share of TPG’s net profit was primarily attributable to an increase in TPG’s net finance costs reflecting an increase in lease interest costs arising from the full-year lease interest cost impact of the tower assets sale and leaseback transaction concluded in 2022, a new tower lease agreement signed in 2023, and higher average interest rates on debt, partly offset by higher service revenue. The decrease in sharing was also impacted by the lack of any one-off accounting gains recognised by TPG in 2023 whereas in 2022 TPG recognised a one-off accounting gain from the sale of TPG’s passive tower assets. Further details are included in Note 10 to the financial statements for the year ended 31 December 2023.
HTAL’s loss per share (basic and diluted) for the year ended 31 December 2023 was $0.91 (2022: $2.94) per ordinary share.
Notes:
Frank John SIXT
Chairman
HTAL Operations and 2023 Financial Results
Hutchison Telecommunications (Australia) Limited (ASX: HTA) (“HTAL” or the “Company”, and together with its controlled entity, the “Group”) reports a statutory net loss of $124.0 million for the year ended 31 December 2023, compared with a net loss of $398.4 million for the comparative year ended 31 December 2022. This represented a $274.4 million decrease in net loss when compared to the year ended 31 December 2022.
This is because in the comparative year ended 31 December 2022, the Group recognised a one-off non-cash impairment loss of $444.6 million on its 25.05%1 interest in TPG Telecom Limited (“TPG”) due to the carrying amount having exceeded the recoverable amount, which was determined by referencing an indicative share price, including a significant influence premium given the parcel of shareholding and significant influence held by HTAL. However, in 2023, no further impairment has been recognised as the recoverable amount is judged to be in excess of the carrying amount of investments.
HTAL’s revenue represents interest income. For the year ended 31 December 2023, revenue increased to $0.9 million from $0.2 million for the comparative year ended 31 December 2022, driven by the increase in interest rates, as well as higher cash and cash equivalents during 2023. HTAL’s operating expenses for the year ended 31 December 2023 increased to $1.8 million from $1.7 million for the comparative year ended 31 December 2022.
The 2023 results included $123.1 million share of net loss of equity-accounted investments in Vodafone Hutchison (Australia) Holdings Limited (“VHAH”)2 and TPG. Compared to $47.7 million share of net profit in 2022, this represented a decrease in share of net profit of $170.8 million. The movement was primarily driven by a $75.2 million increase in HTAL’s share of VHAH’s net finance costs and a $95.6 million decrease in HTAL’s share of TPG’s net profit (after consolidation adjustments). The increase in the share of VHAH’s net finance costs was attributable to an increase in interest rates. The decrease in the share of TPG’s net profit was primarily attributable to an increase in TPG’s net finance costs reflecting an increase in lease interest costs arising from the full-year lease interest cost impact of the tower assets sale and leaseback transaction concluded in 2022, a new tower lease agreement signed in 2023, and higher average interest rates on debt, partly offset by higher service revenue. The decrease in sharing was also impacted by the lack of any one-off accounting gains recognised by TPG in 2023 whereas in 2022 TPG recognised a one-off accounting gain from the sale of TPG’s passive tower assets.
HTAL’s wholly owned subsidiary Hutchison 3G Australia Holdings Pty Limited (“H3GAH”), which holds the Group’s 11.14% direct interest in TPG, received dividends of $37.3 million from TPG during the year 2023. These dividends were advanced to HTAL on an interest-free basis. Part of the proceeds from the interest-free advance was used to fund a $5.4 million repayment of a borrowing facility granted by a subsidiary of the ultimate parent entity, CK Hutchison Holdings Limited. The facility was terminated on 30 June 2023. Additionally, VHAH received dividends of $93.1 million from TPG during the year 2023.
TPG 2023 Financial Results
TPG announced a total revenue of $5,533 million, earnings before interest, tax, depreciation and amortisation (“EBITDA”) of $1,875 million, and a net profit after tax of $49 million for the year ended 31 December 2023, compared to $5,415 million revenue, EBITDA of $2,135 million and a profit of $513 million respectively for the year ended 31 December 2022.
For further details and an explanation of TPG’s results for the year ended 31 December 2023, you may refer to TPG’s 2023 annual report which was lodged with the ASX on 26 February 2024.
HTAL remains committed to its investment in TPG and will continue to support TPG in the future.
Frank John SIXT MA, LLL
Chairman
Frank John Sixt, aged 72, has been a Director and Chairman since January 1998 and 28 December 2023, and Alternate Director to Mr Lai Kai Ming, Dominic since February 2008. Mr Sixt is an executive director, group finance director and deputy managing director of CK Hutchison Holdings Limited (“CKHH”). Since 1991, he has been a director of Cheung Kong (Holdings) Limited (“Cheung Kong (Holdings)”) and Hutchison Whampoa Limited (“HWL”), both of which were formerly listed on The Stock Exchange of Hong Kong Limited (“SEHK”) and became wholly owned subsidiaries of CKHH in 2015. He has been a director of TPG Telecom Limited (ASX: TPG) (formerly Vodafone Hutchison Australia Limited) since 2001. He is also chairman and a non-executive director of TOM Group Limited (“TOM”), an executive director of CK Infrastructure Holdings Limited (“CKI”), and a director of Cenovus Energy Inc. and an alternate director to a director of HK Electric Investments Manager Limited (“HKEIML”) as the trustee-manager of HK Electric Investments (“HKEI”) and HK Electric Investments Limited (“HKEIL”). He was previously a commissioner of PT Indosat Tbk (“PT Indosat”). The aforementioned companies are either the ultimate holding company of HTAL, or subsidiaries or associated companies of CKHH of which Mr Sixt has oversight as director of CKHH. He has almost four decades of legal, global finance and risk management experience, and possesses deep expertise in overseeing financial reporting system, risk management and internal control systems as well as sustainability issues and related risks. Mr Sixt holds a Master’s degree in Arts and a Bachelor’s degree in Civil Law, and is a member of the Bar and of the Law Society of the Provinces of Québec and Ontario, Canada.
Barry ROBERTS-THOMSON
Deputy Chairman
Barry Roberts-Thomson, aged 74, has been a Director since February 1989 and was Managing Director of HTAL from its inception in 1989 until September 2001. In his capacity as Deputy Chairman, Mr Roberts-Thomson represents HTAL in government relations and strategic projects. Mr Roberts-Thomson has also served as a director of TPG from 2001 until his resignation in July 2020 and he also serves as a director on HTAL’s subsidiary, Hutchison 3G Australia Holdings Pty Limited.
Steven Paul ALLEN LLB
Director
Steven Paul Allen, aged 61, has been a Director since 12 January 2024. Mr Allen is a solicitor with extensive experience in mergers and acquisitions. He joined the CKHH group in November 1996 and is currently CKHH Group General Counsel, Head of Mergers and Acquisitions. During his time with the CKHH group, Mr Allen has particularly worked on M&A transactions, joint ventures and operational and regulatory compliance matters for the CKHH group’s telecoms businesses in Europe, Israel, Asia and Australia, including work on many of the Company’s transactions and regulatory compliance matters. Mr Allen has a Bachelor of Laws degree from the University of Adelaide and qualified as a solicitor in South Australia, in England and Wales and in Hong Kong.
Melissa ANASTASIOU
Director
Melissa Anastasiou, aged 52, has been a Director since March 2020. Ms Anastasiou is currently General Counsel for Spark New Zealand Limited (“Spark”) where she is responsible for oversight of the legal and compliance functions, providing Spark with strategic legal and commercial guidance, ensuring the business acts lawfully and with the utmost integrity. Ms Anastasiou joined Spark in 2009 and undertook a number of legal roles across the organisation before being appointed as Group General Counsel in 2012 and to the Spark Leadership Squad on 1 July 2018. Ms Anastasiou has held a range of responsibilities during her time at Spark, including as the Executive Sponsor for Spark’s Wholesale business and currently, as a director on a number of Spark subsidiary boards (including Spark New Zealand Trading Limited and Spark Finance Limited (NZX Listed Issuer)) and of Connexa Limited (Spark’s Towerco joint venture with Ontario Teachers’ Pension Plan). She has also played a pivotal role in leading Spark’s diversity and inclusion programme. Prior to joining Spark, Ms Anastasiou spent a number of years as a Senior Legal Counsel for UK mobile provider Telefonica O2. She also has extensive experience working for leading corporate law firms in Auckland and the UK. Ms Anastasiou has a Bachelor of Laws from Victoria University of Wellington.
Susan Mo Fong CHOW, also known as WOO Mo Fong, Susan
(alias CHOW WOO Mo Fong, Susan) BSc
Director
Susan Mo Fong Chow, aged 70, has been a Director since December 2019. Mrs Chow is a non-executive director of CKHH. She was an executive director and group deputy managing director from June 2015 to July 2016 and senior advisor from August 2016 to December 2016 of CKHH. From 1993 to 2016, she was a director of HWL. Prior to joining HWL, Mrs Chow was a partner of Woo Kwan Lee & Lo, a major law firm in Hong Kong. She is an independent non-executive director of Hong Kong Exchanges and Clearing Limited. Mrs Chow was previously an alternate director to a director of CKI, HKEIML as the trustee-manager of HKEI and HKEIL. She also previously served as a member of the Listing Committee of the SEHK, the Joint Liaison Committee on Taxation of the Law Society of Hong Kong, the Committee on Real Estate Investment Trusts of the Securities and Futures Commission, the Trade and Industry Advisory Board, the Court of The Hong Kong University of Science and Technology and the Appeal Boards Panel (Education). Mrs Chow is a qualified solicitor and holds a Bachelor’s degree in Business Administration.
Justin Herbert GARDENER BEc, FCA, AGIA
Director
Justin Herbert Gardener, aged 87, has been a Director since July 1999. Mr Gardener has been a director of a number of private and publicly listed companies including Austar United Communications Limited (appointed 1999 and retired 2008). From 1961, and until his retirement in 1998, Mr Gardener held a variety of positions with Arthur Andersen, becoming a partner in 1972 and for the last ten years in a management and supervisory role for Asia Pacific. Mr Gardener is a Fellow of the Institute of Chartered Accountants and an Associate of the Governance Institute and holds a Bachelor of Economics Degree from University of Sydney.
LAI Kai Ming, Dominic BSc, MBA
Director
Lai Kai Ming, Dominic, aged 70, has been a Director since May 2004 and Alternate Director to Mr Sixt since May 2006. Mr Lai is an executive director and deputy managing director of CKHH. He was finance director and chief operating officer of the AS Watson group, the retail arm of the CKHH group, from 1994 to 1997 and group managing director of the Harbour Plaza Hotel Management group, the former hotel business of HWL, from 1998 to 2000. Since 2000, he has been a director of HWL. Mr Lai is also a non-executive director of Hutchison Telecommunications Hong Kong Holdings Limited (“HTHKH”), a commissioner of PT Duta Intidaya Tbk, and an alternate director to directors of HTHKH and an alternate director to a director of TOM. He was also Alternate Director to Mr Fok Kin Ning, Canning of HTAL from December 2016 to 28 December 2023. The aforementioned companies are either the ultimate holding company of HTAL, or subsidiaries or associated companies of CKHH of which Mr Lai has oversight as director of CKHH. Mr Lai has over 40 years of management experience in different industries. He holds a Bachelor of Science (Hons) degree and a Master’s degree in Business Administration.
John Michael SCANLON
Director
John Michael Scanlon, aged 82, has been a Director since July 2005. Mr Scanlon is a special venture partner to Clarity Partners LLP, a private equity firm. From 1965 through to 1988, his career was with AT&T, primarily Bell Labs, rising to group vice president of AT&T. Mr Scanlon then went on to become president and general manager of Motorola’s Cellular Networks and Space Sector, founding chief executive officer of Asia Global Crossing, chief executive officer of Global Crossing and chairman and chief executive officer of PrimeCo Cellular.
WOO Chiu Man, Cliff BSc
Director
Woo Chiu Man, Cliff, aged 70, has been a Director since August 2016. Mr Woo has been an executive director and chief executive officer of HTHKH since 2017 and was re-designated as co-deputy chairman and a non-executive director of HTHKH in 2018. He is also a commissioner of PT Indosat. He held various senior technology management positions in the telecommunications industry before joining the group of HWL in 1998. He was deputy managing director of Hutchison Telecommunications (Hong Kong) Limited from 2000 to 2004. He was also an executive director of Hutchison Telecommunications International Limited in 2005. He was seconded to Vodafone Hutchison Australia Pty Limited (now known as TPG Telecom Limited) as chief technology officer from 2012 to 2013 and was part of the core management team. He possesses extensive operations experience in the telecommunications industry and has been involved in cellular technology for over 33 years. Mr Woo holds a Bachelor’s degree in Electronics and a Diploma in Management for Executive Development. He is a Chartered Engineer and also a Member of The Institution of Engineering and Technology (UK) and The Hong Kong Institution of Engineers.
The Annual General Meeting of shareholders of Hutchison Telecommunications (Australia) Limited (ABN 15 003 677 227) (HTAL) will be held at Level 27, Tower Two, International Towers Sydney, 200 Barangaroo Avenue, Barangaroo, NSW 2000 on Tuesday, 7 May 2024 at 10.00 am (Sydney time).
We are located at Level 27, Tower Two, International Towers Sydney, 200 Barangaroo Avenue, Barangaroo, NSW 2000, within a short walking distance of Wynyard train station. Whilst parking is not available onsite, there are various parking stations located nearby.
For public transport information please call 131 500 or visit https://transportnsw.info.
Hutchison Telecommunications (Australia) Limited
Level 27, Tower Two, International Towers Sydney, 200 Barangaroo Avenue, Barangaroo, NSW 2000
+61 2 9015 5088
